Suncor plans asset sales in 2010

Suncor Energy Inc. (TSX:SU) plans to shed up to $4 billion in assets next year as it continues to digest the various operations it took on through its union with Petro-Canada earlier this year

By THE CANADIAN PRESS

CALGARY — Suncor Energy Inc. (TSX:SU) plans to shed up to $4 billion in assets next year as it continues to digest the various operations it took on through its union with Petro-Canada earlier this year.

As the Calgary-based company returns to its roots as an “oilsands-dominated” player, chief executive Rick George said Suncor will target asset sales of between $2 billion and $4 billion, most of which are expected to take place in 2010.

North American natural gas assets, smaller North Sea holdings, natural gas operations in Trinidad and Tobago and others will likely be on the chopping block.

Those divestitures will cut production by at least 10 per cent, but will quickly be replaced by new oilsands projects starting up, George told analysts on a conference call to discuss his company’s third-quarter results.

Suncor’s oilsands holdings won’t be up for grabs, George said.

“I am not a seller of oilsands leases, because it’s our heartland and it’s the core of this company,” George said.